Naperville Illinois Home Loan

Zero Down Loans

Coming up with the necessary down payment for a home loan can be a big hurdle for many would-be home buyers. Many of the no down or low down payment programs have been eliminated with the recent increase in foreclosures and banking credit issues.  Fortunately, there are still a few options available with as little as 3% down. These loans typically carry a higher interest rate, but even so, these loans can be very affordable when you factor in today's overall rates.

No Income Verification Loans

For self-employed buyers and others who have a difficult time documenting income history, this loan used to be an option.  This type of program used to be very popular and relatively easy to obtain.  The recent increase in foreclosures has forced lenders and the secondary market (Fannie Mae and Freddie Mac) to tighten the standards for obtaining a mortgage.  No Income programs are currently not an option any longer.  

FHA Loans

FHA loans have returned to the lending market as a smart option for home financing for first-time home buyers and those with less than perfect credit. The Federal Housing Administration (FHA), offers loans for low-to-moderate-income home buyers. FHA loans have low downpayments, which typically run around 3 percent, and have relatively easy requirements. FHA mortgages have no income restrictions and even those with lower credit scores may be considered. Past bankruptcy does not necessarily disqualify borrowers from using this program!

Just some of the benefits of an FHA Loan over a conventional loan include:

• More lenient qualification standards
• Smaller down payment requirements
• Your Loan is insured by the US government, allowing lenders to offer you lower rates
• Lower Closing Costs

After the fallout of the subprime and Alt-A loan market in 2007, FHA loans have received a new shot of energy throughout the housing market. Borrowers like yourself who once would have been better off in a conventional mortgage may now find a FHA Home Loan to be the cheapest, safest option in securing your home. FHA refinancing is also poised to save hundreds of thousands of Americans from foreclosure. Lenders, realtors, politicians, and investors have all issued statements championing the return of the FHA Home Loan Program to its rightful place in helping Americans purchase their homes.

VA Loans

The Department of Veterans Affairs (VA) offers a zero-down mortgage program. To take advantage of this program, borrowers need to be among those listed as veterans and service personnel in the U.S. military. One of the biggest benefits of this program is that it eliminates the need for private mortgage insurance!

Adjustable Rate Loans

With a fixed-rate mortgage, the interest rate stays the same for the life of the loan. But with an Adjustable Rate Mortgage (ARM), the interest rate changes periodically, and is typically tied to an index, and payments go up or down accordingly. Generally speaking, lenders charge a lower initial interest rate for the ARM than for the fixed rate mortgage. If you are expecting interest rates to decrease in the future, or if you are trying to maximize your purchase power today knowing your income will rise in the future, then this loan may be right for you. Also used when you only expect to be in the home a short time.

Find The Ideal Loan for you!

Give me a call so we can further discuss your individual financial position.  I will than refer you to a lender that I feel with best fit your needs.